Madhya Pradesh High Court

Salary reduction and recovery orders issued without prior notice or hearing violate principles of natural justice.

Irshad Khan vs The State Of Madhya Pradesh

Madhya Pradesh High CourtJUDGMENT: April 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was engaged as a daily wage unskilled worker in Madhav National Park in August 1982.

Source reference: para. 2

After 26 years of service, he was upgraded to the "skilled worker" category effective May 1, 2008.

Source reference: para. 2, 5

Following a State circular dated October 7, 2016, regarding the regularization of daily wagers, the petitioner was designated as a Sthai Karmi (Permanent Worker) on January 19, 2017, and his pay was fixed at ₹7,880/- in the scale of ₹5000-8000/- via an order dated January 23, 2017.

Source reference: para. 2, 5

However, following a subsequent clarification circular dated November 23, 2017, the respondents issued an order on September 12, 2018, refixing and reducing the petitioner’s pay to ₹7,000/- and ordering the recovery of excess payments.

Source reference: para. 2, 5

The petitioner challenged this reduction and recovery, alleging a violation of natural justice as no notice or hearing was provided.

Source reference: para. 2
02

Issues

1. Whether the impugned order reducing the petitioner's pay and directing recovery is sustainable when passed without providing an opportunity for a hearing or a show-cause notice.

Source reference: para. 2, 5

2. Whether the respondents could refix the petitioner’s salary while the original fixation order dated January 23, 2017, remained valid and uncancelled.

Source reference: para. 2, 5, 6
03

Law Applied

Principles of Natural Justice, specifically the doctrine that an order entailing civil consequences cannot be passed without providing the affected party an opportunity to be heard.

Source reference: para. 2, 5, 6

State's regularization scheme for daily wagers outlined in the General Administration Department Circulars dated 07.10.2016 and 23.11.2017.

Source reference: para. 2, 5

The principle that recovery is impermissible where the employee has not engaged in fraud or misrepresentation regarding their pay fixation.

Source reference: para. 2, 5
04

Reasoning

The Court observed that the petitioner had rendered 34 years of service and was upgraded to the skilled category through valid administrative orders.

Source reference: para. 5

The court found that the respondents summarily reduced the petitioner's pay and ordered recovery based on a subsequent clarification without issuing a show-cause notice or assigning specific reasons for the refixation.

Source reference: para. 2, 5

It was noted that the original pay fixation order of January 23, 2017, had never been formally cancelled or set aside.

Source reference: para. 5, 6

Crucially, the court found that the petitioner had neither suppressed material facts nor misrepresented his status to obtain the higher pay.

Source reference: para. 2, 5

Consequently, the court determined that the unilateral reduction of salary, carrying significant civil consequences, was a violation of the principles of natural justice and was legally flawed.

Source reference: para. 5, 6
05

Holding

The High Court allowed the petition, quashing the impugned order dated September 12, 2018, and the recovery order.

The Court held that since the original fixation order of January 23, 2017, remained in force, the petitioner was entitled to have his pay maintained/refixed according to that order.

Source reference: para. 7(iii)

The respondents were directed to refund any recovered amounts within three months.

Source reference: para. 7(ii)

Failure to comply within the three-month period would result in the respondents paying interest at the rate of 6% per annum from the date of entitlement until actual payment.

Source reference: para. 7(iv)
Madhya Pradesh High Court

Original Court PDF

Irshad KhanvsThe State Of Madhya Pradesh

Madhya Pradesh High Court · April 06, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment